The Chicago Tribune recently published “A federal solution to Chicago’s public pension mess”. According to that article, Chicago’s pension debts promised to retired government employees, can’t be paid based on current funding. Therefore, the city’s government will raise taxes, cut benefits and force Chicagoans into an era of “austerity” similar to that which has been inflicted on the people of bankrupt Greece.
But even after an era of austerity, the pension debt still can’t and won’t be paid in full.
Chicago is a microcosm of the US and world economies. Pension plans throughout the U.S. and global economies are going to fail. Many retirees are heading for poverty.
• I’m not against unions, but I have no sympathy for the Chicago teachers and police officers’ unions. It may seem sad that they’re about retire without fat pensions, but they’re not innocent victims. They bribed crooked politicians to rob future generations (children, grandchildren, even the unborn) to provide pensions to government employees that were not only “overly-generous” but unearned.
Read the rest of this entry »